Gold stream on Sabre Gold’s Copperstone Gold Mine – a previously producing, construction-stage mine in Arizona
Sabre Gold Mines Corp.
Gold Stream of 9.9% of gold produced until a cumulative 21,000 ounces are delivered;
then 3.3% of gold until a cumulative 27,000 ounces are delivered; then 1.2% of gold produced thereafter. Cash payment per ounce of gold delivered equal to 25% of the average LBMA gold spot price.
US$18 million in three US$6 million tranches
- Near-term production: Copperstone is expected to achieve commercial production within 12 months of financing completion.
- Tier 1 jurisdiction in Arizona, USA: The mine restart plan envisions an approximately 550 tonne-per-day underground operation and whole ore leach process to produce gold doré on site.
- Low capital intensity restart: Fully permitted asset with significant (+US$100 million) infrastructure in place.
- Historical producer: Copperstone historically produced over 500,000 ounces from 1987 to 1993 through open-pit mining, and was acquired by Sabre Gold in 2014.
- Expansion potential and exploration upside: The September 2021 Mineral Resources Estimate contains 306,000 ounces in Measured and Indicated Resources and 212,000 ounces in Inferred Resources. Sabre Gold has identified multiple high-priority drill targets and highlights over 1 million ounces of near-mine resource potential at Copperstone that could lead to an eventual mine life extension.
Copperstone is a past-producing gold mine located in western Arizona, USA, approximately 230 km west of Phoenix and has year-round access. The project sits within the Walker Lane gold trend, a mineral belt hosting a total known gold endowment of over 40 million ounces.
The Copperstone Project is presently under construction and re-development as an underground operation. Over 500,000 ounces were produced from 1987 to 1993 by Cyprus Minerals via open pit methods. Sabre Gold estimates that over US$100 million in mining and processing infrastructure remain in place at Copperstone allowing for relatively modest restart capital costs.
Sabre Gold’s recently updated Mineral Resources Estimate at Copperstone increased Measured Resources by 53% to 196,000 ounces (806,000 tonnes at 7.6 g/t), and Inferred Resources by 45% to 212,000 ounces (1,124,000 tonnes at 5.9 g/t), for a total 23% increase in gold ounces across all mineral resource categories. The updated mineral resource statement supports Star Royalties’ investment case by demonstrating potential for additional growth in resources an future mine life extension.
The mine and process plant are forecast to run at a rate of 550 tonnes per day, with all mineralized material being crushed, milled and processed by whole ore leach (direct cyanidation of Copperstone’s entire ore feed and production to doré). Gold recoveries are expected to average 95%. The mining method is expected to be predominantly mechanized cut-and-fill using rock fill and cemented rock fill with an average dilution assumption of 25.3%. Annual gold production is expected to be approximately 40,000 ounces, with average all-in sustaining costs of ~US$1,100/oz, according to Sabre Gold.